| Old | New | Differences | |
|---|---|---|---|
| 1 | - | Amended IN Senate | |
| 1 | + | Amended IN Senate July 02, 2018 Amended IN Assembly May 26, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1085Introduced by Assembly Member CalderonFebruary 16, 2017 An act to amend Sections 17941 and 19025 Section 23153 of the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 1085, as amended, Calderon. Business entities: annual tax: minimum franchise tax: fees. Minimum franchise tax: exemption.Existing law imposes an annual tax in an amount equal to the minimum franchise tax on every limited liability company doing business in this state. In addition, existing law requires every limited liability company, if the articles of organization have been accepted by, or a certificate of registration has been issued by, the Secretary of State, to pay an annual tax in an amount equal to the minimum franchise tax. Existing law requires the tax assessed under these provisions to be due and payable on or before the 15th day of the 4th month of the taxable year. a minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. Existing law imposes an annual minimum franchise tax, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. Existing law requires corporations subject to the minimum franchise tax to pay annually to the state a minimum franchise tax of $800 and provides that the estimated tax shall not be less than the minimum tax. If the amount of estimated tax does not exceed the minimum franchise tax, existing law requires the entire amount of the estimated tax to be due and payable on or before the 15th day of the 4th month of the taxable year.This bill would also authorize that annual tax and minimum franchise tax to be due and payable in 2 or 3 equal installments, on or before specified dates. would, for taxable years beginning on or after January 1, 2019, exempt a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and 2nd taxable year from payment of the minimum franchise tax for its first and 2nd taxable years. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 23153 of the Revenue and Taxation Code is amended to read:23153. (a) Every corporation described in subdivision (b) shall be subject to the minimum franchise tax specified in subdivision (d) from the earlier of the date of incorporation, qualification, or commencing to do business within this state, until the effective date of dissolution or withdrawal as provided in Section 23331 or, if later, the date the corporation ceases to do business within the limits of this state.(b) Unless expressly exempted by this part or the California Constitution, subdivision (a) shall apply to each of the following:(1) Every corporation that is incorporated under the laws of this state.(2) Every corporation that is qualified to transact intrastate business in this state pursuant to Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code.(3) Every corporation that is doing business in this state.(c) The following entities are not subject to the minimum franchise tax specified in this section:(1) Credit unions.(2) Nonprofit cooperative associations organized pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code that have been issued the certificate of the board of supervisors prepared pursuant to Section 54042 of the Food and Agricultural Code. The association shall be exempt from the minimum franchise tax for five consecutive taxable years, commencing with the first taxable year for which the certificate is issued pursuant to subdivision (b) of Section 54042 of the Food and Agricultural Code. This paragraph only applies to nonprofit cooperative associations organized on or after January 1, 1994.(d) (1) Except as provided in paragraph (2), paragraph (1) of subdivision (f) of Section 23151, paragraph (1) of subdivision (f) of Section 23181, and paragraph (1) of subdivision (c) of Section 23183, corporations subject to the minimum franchise tax shall pay annually to the state a minimum franchise tax of eight hundred dollars ($800).(2) The minimum franchise tax shall be twenty-five dollars ($25) for each of the following:(A) A corporation formed under the laws of this state whose principal business when formed was gold mining, which is inactive and has not done business within the limits of the state since 1950.(B) A corporation formed under the laws of this state whose principal business when formed was quicksilver mining, which is inactive and has not done business within the limits of the state since 1971, or has been inactive for a period of 24 consecutive months or more.(3) For purposes of paragraph (2), a corporation shall not be considered to have done business if it engages in business other than mining.(e) Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 1999, and before January 1, 2000, every qualified new corporation shall pay annually to the state a minimum franchise tax of five hundred dollars ($500) for the second taxable year. This subdivision shall apply to any corporation that is a qualified new corporation and is incorporated on or after January 1, 1999, and before January 1, 2000.(1) The determination of the gross receipts of a corporation, for purposes of this subdivision, shall be made by including the gross receipts of each member of the commonly controlled group, as defined in Section 25105, of which the corporation is a member.(2) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(3) Qualified new corporation means a corporation that is incorporated under the laws of this state or has qualified to transact intrastate business in this state, that begins business operations at or after the time of its incorporation and that reasonably estimates that it will have gross receipts, less returns and allowances, reportable to this state for the taxable year of one million dollars ($1,000,000) or less. Qualified new corporation does not include any corporation that began business operations as a sole proprietorship, a partnership, or any other form of business entity prior to its incorporation. This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(4) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, or to the formation of any subsidiary corporation, to the extent applicable.(5) For any taxable year beginning on or after January 1, 1999, and before January 1, 2000, if a corporation has qualified to pay five hundred dollars ($500) for the second taxable year under this subdivision, but in its second taxable year, the corporations gross receipts, as determined under paragraphs (1) and (2), exceed one million dollars ($1,000,000), an additional tax in the amount equal to three hundred dollars ($300) for the second taxable year shall be due and payable by the corporation on the due date of its return, without regard to extension, for that year.(f) (1) Notwithstanding subdivision (a), every corporation that incorporates or qualifies to do business in this state on or after January 1, 2000, shall not be subject to the minimum franchise tax for its first taxable year.(2) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, and qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, to the extent applicable.(3) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of avoiding payment of its minimum franchise tax.(g) Notwithstanding subdivision (a), a domestic corporation, as defined in Section 167 of the Corporations Code, that files a certificate of dissolution in the office of the Secretary of State pursuant to subdivision (b) of Section 1905 of the Corporations Code, prior to its amendment by the act amending this subdivision, and that does not thereafter do business shall not be subject to the minimum franchise tax for taxable years beginning on or after the date of that filing.(h) The minimum franchise tax imposed by paragraph (1) of subdivision (d) shall not be increased by the Legislature by more than 10 percent during any calendar year.(i) (1) Notwithstanding subdivision (a), a corporation that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the minimum franchise tax for any taxable year the owner is deployed and the corporation operates at a loss or ceases operation.(2) The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation.(3) For the purposes of this subdivision, all of the following definitions apply:(A) Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following:(i) Temporary duty for the sole purpose of training or processing.(ii) A permanent change of station.(B) Operates at a loss means negative net income as defined in Section 24341.(C) Small business means a corporation with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less.(4) This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018.(j) (1) Notwithstanding subdivision (a), a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and second taxable year shall not be subject to the minimum franchise tax for its first and second taxable years.(2) For purposes of this subdivision:(A) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(B) New corporation means a corporation that, on or after January 1, 2019, is first incorporated under the laws of this state or has first qualified to transact intrastate business in this state that begins business operations at or after the time of its incorporation. New corporation does not include any corporation that began business operations as, or acquired its business operations from, a sole proprietorship, a limited liability partnership, or any other form of business entity prior to its incorporation or any corporation that acquired its business operations from a corporation.(C) Small business means a limited partnership that has gross receipts, less returns and allowances, reportable to this state for the taxable year of five thousand dollars ($5,000) or less.(3) (A) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(B) This subdivision shall not apply to a corporation that does not file a timely return.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 17941 of the Revenue and Taxation Code is amended to read:17941.(a)For each taxable year beginning on or after January 1, 1997, a limited liability company doing business in this state (as defined in Section 23101) shall pay annually to this state a tax for the privilege of doing business in this state in an amount equal to the applicable amount specified in subdivision (d) of Section 23153 for the taxable year.(b)(1)In addition to any limited liability company that is doing business in this state and is therefore subject to the tax imposed by subdivision (a), for each taxable year beginning on or after January 1, 1997, a limited liability company shall pay annually the tax prescribed in subdivision (a) if articles of organization have been accepted, or a certificate of registration has been issued, by the office of the Secretary of State. The tax shall be paid for each taxable year, or part thereof, until a certificate of cancellation of registration or of articles of organization is filed on behalf of the limited liability company with the office of the Secretary of State.(2)If a taxpayer files a return with the Franchise Tax Board that is designated as its final return, the Franchise Tax Board shall notify the taxpayer that the annual tax shall continue to be due annually until a certificate of dissolution is filed with the Secretary of State pursuant to Section 17707.08 of the Corporations Code or a certificate of cancellation is filed with the Secretary of State pursuant to Section 17708.06 of the Corporations Code.(c)(1)The tax assessed under this section shall be due and payable according to one of the following:(A)On or before the 15th day of the fourth month of the taxable year.(B)In three equal installments on or before the 15th day of the 4th, 8th, and 12th months of the taxable year.(C)In two equal installments, with the first installment on or before the 15th day of the fourth month of the taxable year and the second installment on or before the 15th day of the 12th month of the taxable year.(2)The Franchise Tax Board shall develop procedures for taxpayers to make an annual binding election, by the 15th day of the second month of the taxable year, with the Franchise Tax Board to elect the alternate payment option under subparagraph (B) or (C).(d)For purposes of this section, limited liability company means an organization, other than a limited liability company that is exempt from the tax and fees imposed under this chapter pursuant to Section 23701h or Section 23701x, that is formed by one or more persons under the law of this state, any other country, or any other state, as a limited liability company and that is not taxable as a corporation for California tax purposes.(e)Notwithstanding anything in this section to the contrary, if the office of the Secretary of State files a certificate of cancellation pursuant to Section 17707.02 of the Corporations Code for any limited liability company, then paragraph (1) of subdivision (f) of Section 23153 shall apply to that limited liability company as if the limited liability company were properly treated as a corporation for that limited purpose only, and paragraph (2) of subdivision (f) of Section 23153 shall not apply. Nothing in this subdivision entitles a limited liability company to receive a reimbursement for any annual taxes or fees already paid.(f)(1)Notwithstanding any provision of this section to the contrary, a limited liability company that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the tax imposed under this section for any taxable year the owner is deployed and the limited liability company operates at a loss or ceases operation.(2)The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation.(3)For the purposes of this subdivision, all of the following definitions apply:(A)Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following:(i)Temporary duty for the sole purpose of training or processing.(ii)A permanent change of station.(B)Operates at a loss means a limited liability companys expenses exceed its receipts.(C)Small business means a limited liability company with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less.(4)This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018.SEC. 2.Section 19025 of the Revenue and Taxation Code is amended to read:19025.(a)(1)If the amount of estimated tax does not exceed the minimum tax specified by Section 23153, the entire amount of the estimated tax shall be due and payable according to one of the following:(A)On or before the 15th day of the fourth month of the taxable year.(B)In three equal installments on or before the 15th day of the 4th, 8th, and 12th months of the taxable year.(C)In two equal installments, with the first installment on or before the 15th day of the fourth month of the taxable year and the second installment on or before the 15th day of the 12th month of the taxable year.(2)The Franchise Tax Board shall develop procedures for taxpayers to make an annual binding election, by the 15th day of the second month of the taxable year, with the Franchise Tax Board to elect the alternate payment option under subparagraph (B) or (C).(b)Except as provided in subdivision (c), if the amount of estimated tax exceeds the minimum tax specified by Section 23153, the amount payable shall be paid in installments as follows:If the requirementsThe following percentages of the estimated tax shall be paid on the 15th day of theof this subdivision are first met4th month6th month9th month12th monthBefore the 1st day of the 4th month of the taxable year30 (but not less than the minimum tax provided in Section 23153 and any tax under Section 23800.5)40030After the last day of the 3rd month and before the 1st day of the 6th month of the taxable year__60040After the last day of the 5th month and before the 1st day of the 9th month of the taxable year____7030After the last day of the 8th month and before the 1st day of the 12th month of the taxable year______100(c)If a wholly owned subsidiary is first subject to tax under Section 23800.5 after the last day of the third month of the taxable year of owner, the amount of the next installment of estimated tax under subdivision (b) after the wholly owned subsidiary is subject to tax under Section 23800.5 shall not be less than the amount of the tax of the wholly owned subsidiary under Section 23800.5 and an amount equal to that amount shall be due and payable on the date the installment is required to be paid. For purposes of determining which installment is the next installment of estimated tax under subdivision (b), subdivision (b) shall be modified by substituting includes the tax of a wholly owned subsidiary under Section 23800.5 for exceeds the minimum tax specified by Section 23153.(d)The amendments made to this section by Section 1 of Chapter 1 of the First Extraordinary Session of the Statutes of 2008 shall apply to installments due for each taxable year beginning on or after January 1, 2009, and before January 1, 2010.(e)The amendments made to this section by Section 2 of Chapter 15 of the Fourth Extraordinary Session of the Statutes of 2009 shall apply to installments due for each taxable year beginning on or after January 1, 2010. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Senate July 02, 2018 Amended IN Assembly May 26, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1085Introduced by Assembly Member CalderonFebruary 16, 2017 An act to amend Sections 17941 and 19025 Section 23153 of the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 1085, as amended, Calderon. Business entities: annual tax: minimum franchise tax: fees. Minimum franchise tax: exemption.Existing law imposes an annual tax in an amount equal to the minimum franchise tax on every limited liability company doing business in this state. In addition, existing law requires every limited liability company, if the articles of organization have been accepted by, or a certificate of registration has been issued by, the Secretary of State, to pay an annual tax in an amount equal to the minimum franchise tax. Existing law requires the tax assessed under these provisions to be due and payable on or before the 15th day of the 4th month of the taxable year. a minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. Existing law imposes an annual minimum franchise tax, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. Existing law requires corporations subject to the minimum franchise tax to pay annually to the state a minimum franchise tax of $800 and provides that the estimated tax shall not be less than the minimum tax. If the amount of estimated tax does not exceed the minimum franchise tax, existing law requires the entire amount of the estimated tax to be due and payable on or before the 15th day of the 4th month of the taxable year.This bill would also authorize that annual tax and minimum franchise tax to be due and payable in 2 or 3 equal installments, on or before specified dates. would, for taxable years beginning on or after January 1, 2019, exempt a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and 2nd taxable year from payment of the minimum franchise tax for its first and 2nd taxable years. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Senate July 02, 2018 Amended IN Assembly May 26, 2017 | |
| 6 | 6 | ||
| 7 | - | Amended IN Senate August 06, 2018 | |
| 8 | 7 | Amended IN Senate July 02, 2018 | |
| 9 | 8 | Amended IN Assembly May 26, 2017 | |
| 10 | 9 | ||
| 11 | 10 | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION | |
| 12 | 11 | ||
| 13 | 12 | Assembly Bill No. 1085 | |
| 14 | 13 | ||
| 15 | 14 | Introduced by Assembly Member CalderonFebruary 16, 2017 | |
| 16 | 15 | ||
| 17 | 16 | Introduced by Assembly Member Calderon | |
| 18 | 17 | February 16, 2017 | |
| 19 | 18 | ||
| 20 | - | An act to amend Section 23153 | |
| 19 | + | An act to amend Sections 17941 and 19025 Section 23153 of the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy. | |
| 21 | 20 | ||
| 22 | 21 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 22 | ||
| 24 | 23 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 24 | ||
| 26 | - | AB 1085, as amended, Calderon. | |
| 25 | + | AB 1085, as amended, Calderon. Business entities: annual tax: minimum franchise tax: fees. Minimum franchise tax: exemption. | |
| 27 | 26 | ||
| 28 | - | Existing law imposes a minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. | |
| 27 | + | Existing law imposes an annual tax in an amount equal to the minimum franchise tax on every limited liability company doing business in this state. In addition, existing law requires every limited liability company, if the articles of organization have been accepted by, or a certificate of registration has been issued by, the Secretary of State, to pay an annual tax in an amount equal to the minimum franchise tax. Existing law requires the tax assessed under these provisions to be due and payable on or before the 15th day of the 4th month of the taxable year. a minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. Existing law imposes an annual minimum franchise tax, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. Existing law requires corporations subject to the minimum franchise tax to pay annually to the state a minimum franchise tax of $800 and provides that the estimated tax shall not be less than the minimum tax. If the amount of estimated tax does not exceed the minimum franchise tax, existing law requires the entire amount of the estimated tax to be due and payable on or before the 15th day of the 4th month of the taxable year.This bill would also authorize that annual tax and minimum franchise tax to be due and payable in 2 or 3 equal installments, on or before specified dates. would, for taxable years beginning on or after January 1, 2019, exempt a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and 2nd taxable year from payment of the minimum franchise tax for its first and 2nd taxable years. This bill would take effect immediately as a tax levy. | |
| 29 | 28 | ||
| 30 | - | Existing law imposes a minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. | |
| 29 | + | Existing law imposes an annual tax in an amount equal to the minimum franchise tax on every limited liability company doing business in this state. In addition, existing law requires every limited liability company, if the articles of organization have been accepted by, or a certificate of registration has been issued by, the Secretary of State, to pay an annual tax in an amount equal to the minimum franchise tax. Existing law requires the tax assessed under these provisions to be due and payable on or before the 15th day of the 4th month of the taxable year. a minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. | |
| 31 | 30 | ||
| 32 | - | . | |
| 31 | + | Existing law imposes an annual minimum franchise tax, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. Existing law requires corporations subject to the minimum franchise tax to pay annually to the state a minimum franchise tax of $800 and provides that the estimated tax shall not be less than the minimum tax. If the amount of estimated tax does not exceed the minimum franchise tax, existing law requires the entire amount of the estimated tax to be due and payable on or before the 15th day of the 4th month of the taxable year. | |
| 33 | 32 | ||
| 34 | - | ||
| 35 | - | ||
| 36 | - | This bill would, for taxable years beginning on or after January 1, 2019, exempt a corporation that is a new corporation limited partnership that is a new limited partnership and a limited liability company that is a new limited liability company in taxable years beginning on or after January 1, 2019, and is a small business in its first and 2nd taxable year from payment of the minimum franchise annual tax for its first and 2nd taxable years. taxable year. | |
| 33 | + | This bill would also authorize that annual tax and minimum franchise tax to be due and payable in 2 or 3 equal installments, on or before specified dates. would, for taxable years beginning on or after January 1, 2019, exempt a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and 2nd taxable year from payment of the minimum franchise tax for its first and 2nd taxable years. | |
| 37 | 34 | ||
| 38 | 35 | This bill would take effect immediately as a tax levy. | |
| 39 | 36 | ||
| 40 | 37 | ## Digest Key | |
| 41 | 38 | ||
| 42 | 39 | ## Bill Text | |
| 43 | 40 | ||
| 44 | - | The people of the State of California do enact as follows:SECTION 1. Section | |
| 41 | + | The people of the State of California do enact as follows:SECTION 1. Section 23153 of the Revenue and Taxation Code is amended to read:23153. (a) Every corporation described in subdivision (b) shall be subject to the minimum franchise tax specified in subdivision (d) from the earlier of the date of incorporation, qualification, or commencing to do business within this state, until the effective date of dissolution or withdrawal as provided in Section 23331 or, if later, the date the corporation ceases to do business within the limits of this state.(b) Unless expressly exempted by this part or the California Constitution, subdivision (a) shall apply to each of the following:(1) Every corporation that is incorporated under the laws of this state.(2) Every corporation that is qualified to transact intrastate business in this state pursuant to Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code.(3) Every corporation that is doing business in this state.(c) The following entities are not subject to the minimum franchise tax specified in this section:(1) Credit unions.(2) Nonprofit cooperative associations organized pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code that have been issued the certificate of the board of supervisors prepared pursuant to Section 54042 of the Food and Agricultural Code. The association shall be exempt from the minimum franchise tax for five consecutive taxable years, commencing with the first taxable year for which the certificate is issued pursuant to subdivision (b) of Section 54042 of the Food and Agricultural Code. This paragraph only applies to nonprofit cooperative associations organized on or after January 1, 1994.(d) (1) Except as provided in paragraph (2), paragraph (1) of subdivision (f) of Section 23151, paragraph (1) of subdivision (f) of Section 23181, and paragraph (1) of subdivision (c) of Section 23183, corporations subject to the minimum franchise tax shall pay annually to the state a minimum franchise tax of eight hundred dollars ($800).(2) The minimum franchise tax shall be twenty-five dollars ($25) for each of the following:(A) A corporation formed under the laws of this state whose principal business when formed was gold mining, which is inactive and has not done business within the limits of the state since 1950.(B) A corporation formed under the laws of this state whose principal business when formed was quicksilver mining, which is inactive and has not done business within the limits of the state since 1971, or has been inactive for a period of 24 consecutive months or more.(3) For purposes of paragraph (2), a corporation shall not be considered to have done business if it engages in business other than mining.(e) Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 1999, and before January 1, 2000, every qualified new corporation shall pay annually to the state a minimum franchise tax of five hundred dollars ($500) for the second taxable year. This subdivision shall apply to any corporation that is a qualified new corporation and is incorporated on or after January 1, 1999, and before January 1, 2000.(1) The determination of the gross receipts of a corporation, for purposes of this subdivision, shall be made by including the gross receipts of each member of the commonly controlled group, as defined in Section 25105, of which the corporation is a member.(2) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(3) Qualified new corporation means a corporation that is incorporated under the laws of this state or has qualified to transact intrastate business in this state, that begins business operations at or after the time of its incorporation and that reasonably estimates that it will have gross receipts, less returns and allowances, reportable to this state for the taxable year of one million dollars ($1,000,000) or less. Qualified new corporation does not include any corporation that began business operations as a sole proprietorship, a partnership, or any other form of business entity prior to its incorporation. This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(4) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, or to the formation of any subsidiary corporation, to the extent applicable.(5) For any taxable year beginning on or after January 1, 1999, and before January 1, 2000, if a corporation has qualified to pay five hundred dollars ($500) for the second taxable year under this subdivision, but in its second taxable year, the corporations gross receipts, as determined under paragraphs (1) and (2), exceed one million dollars ($1,000,000), an additional tax in the amount equal to three hundred dollars ($300) for the second taxable year shall be due and payable by the corporation on the due date of its return, without regard to extension, for that year.(f) (1) Notwithstanding subdivision (a), every corporation that incorporates or qualifies to do business in this state on or after January 1, 2000, shall not be subject to the minimum franchise tax for its first taxable year.(2) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, and qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, to the extent applicable.(3) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of avoiding payment of its minimum franchise tax.(g) Notwithstanding subdivision (a), a domestic corporation, as defined in Section 167 of the Corporations Code, that files a certificate of dissolution in the office of the Secretary of State pursuant to subdivision (b) of Section 1905 of the Corporations Code, prior to its amendment by the act amending this subdivision, and that does not thereafter do business shall not be subject to the minimum franchise tax for taxable years beginning on or after the date of that filing.(h) The minimum franchise tax imposed by paragraph (1) of subdivision (d) shall not be increased by the Legislature by more than 10 percent during any calendar year.(i) (1) Notwithstanding subdivision (a), a corporation that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the minimum franchise tax for any taxable year the owner is deployed and the corporation operates at a loss or ceases operation.(2) The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation.(3) For the purposes of this subdivision, all of the following definitions apply:(A) Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following:(i) Temporary duty for the sole purpose of training or processing.(ii) A permanent change of station.(B) Operates at a loss means negative net income as defined in Section 24341.(C) Small business means a corporation with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less.(4) This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018.(j) (1) Notwithstanding subdivision (a), a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and second taxable year shall not be subject to the minimum franchise tax for its first and second taxable years.(2) For purposes of this subdivision:(A) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(B) New corporation means a corporation that, on or after January 1, 2019, is first incorporated under the laws of this state or has first qualified to transact intrastate business in this state that begins business operations at or after the time of its incorporation. New corporation does not include any corporation that began business operations as, or acquired its business operations from, a sole proprietorship, a limited liability partnership, or any other form of business entity prior to its incorporation or any corporation that acquired its business operations from a corporation.(C) Small business means a limited partnership that has gross receipts, less returns and allowances, reportable to this state for the taxable year of five thousand dollars ($5,000) or less.(3) (A) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(B) This subdivision shall not apply to a corporation that does not file a timely return.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 17941 of the Revenue and Taxation Code is amended to read:17941.(a)For each taxable year beginning on or after January 1, 1997, a limited liability company doing business in this state (as defined in Section 23101) shall pay annually to this state a tax for the privilege of doing business in this state in an amount equal to the applicable amount specified in subdivision (d) of Section 23153 for the taxable year.(b)(1)In addition to any limited liability company that is doing business in this state and is therefore subject to the tax imposed by subdivision (a), for each taxable year beginning on or after January 1, 1997, a limited liability company shall pay annually the tax prescribed in subdivision (a) if articles of organization have been accepted, or a certificate of registration has been issued, by the office of the Secretary of State. The tax shall be paid for each taxable year, or part thereof, until a certificate of cancellation of registration or of articles of organization is filed on behalf of the limited liability company with the office of the Secretary of State.(2)If a taxpayer files a return with the Franchise Tax Board that is designated as its final return, the Franchise Tax Board shall notify the taxpayer that the annual tax shall continue to be due annually until a certificate of dissolution is filed with the Secretary of State pursuant to Section 17707.08 of the Corporations Code or a certificate of cancellation is filed with the Secretary of State pursuant to Section 17708.06 of the Corporations Code.(c)(1)The tax assessed under this section shall be due and payable according to one of the following:(A)On or before the 15th day of the fourth month of the taxable year.(B)In three equal installments on or before the 15th day of the 4th, 8th, and 12th months of the taxable year.(C)In two equal installments, with the first installment on or before the 15th day of the fourth month of the taxable year and the second installment on or before the 15th day of the 12th month of the taxable year.(2)The Franchise Tax Board shall develop procedures for taxpayers to make an annual binding election, by the 15th day of the second month of the taxable year, with the Franchise Tax Board to elect the alternate payment option under subparagraph (B) or (C).(d)For purposes of this section, limited liability company means an organization, other than a limited liability company that is exempt from the tax and fees imposed under this chapter pursuant to Section 23701h or Section 23701x, that is formed by one or more persons under the law of this state, any other country, or any other state, as a limited liability company and that is not taxable as a corporation for California tax purposes.(e)Notwithstanding anything in this section to the contrary, if the office of the Secretary of State files a certificate of cancellation pursuant to Section 17707.02 of the Corporations Code for any limited liability company, then paragraph (1) of subdivision (f) of Section 23153 shall apply to that limited liability company as if the limited liability company were properly treated as a corporation for that limited purpose only, and paragraph (2) of subdivision (f) of Section 23153 shall not apply. Nothing in this subdivision entitles a limited liability company to receive a reimbursement for any annual taxes or fees already paid.(f)(1)Notwithstanding any provision of this section to the contrary, a limited liability company that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the tax imposed under this section for any taxable year the owner is deployed and the limited liability company operates at a loss or ceases operation.(2)The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation.(3)For the purposes of this subdivision, all of the following definitions apply:(A)Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following:(i)Temporary duty for the sole purpose of training or processing.(ii)A permanent change of station.(B)Operates at a loss means a limited liability companys expenses exceed its receipts.(C)Small business means a limited liability company with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less.(4)This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018.SEC. 2.Section 19025 of the Revenue and Taxation Code is amended to read:19025.(a)(1)If the amount of estimated tax does not exceed the minimum tax specified by Section 23153, the entire amount of the estimated tax shall be due and payable according to one of the following:(A)On or before the 15th day of the fourth month of the taxable year.(B)In three equal installments on or before the 15th day of the 4th, 8th, and 12th months of the taxable year.(C)In two equal installments, with the first installment on or before the 15th day of the fourth month of the taxable year and the second installment on or before the 15th day of the 12th month of the taxable year.(2)The Franchise Tax Board shall develop procedures for taxpayers to make an annual binding election, by the 15th day of the second month of the taxable year, with the Franchise Tax Board to elect the alternate payment option under subparagraph (B) or (C).(b)Except as provided in subdivision (c), if the amount of estimated tax exceeds the minimum tax specified by Section 23153, the amount payable shall be paid in installments as follows:If the requirementsThe following percentages of the estimated tax shall be paid on the 15th day of theof this subdivision are first met4th month6th month9th month12th monthBefore the 1st day of the 4th month of the taxable year30 (but not less than the minimum tax provided in Section 23153 and any tax under Section 23800.5)40030After the last day of the 3rd month and before the 1st day of the 6th month of the taxable year__60040After the last day of the 5th month and before the 1st day of the 9th month of the taxable year____7030After the last day of the 8th month and before the 1st day of the 12th month of the taxable year______100(c)If a wholly owned subsidiary is first subject to tax under Section 23800.5 after the last day of the third month of the taxable year of owner, the amount of the next installment of estimated tax under subdivision (b) after the wholly owned subsidiary is subject to tax under Section 23800.5 shall not be less than the amount of the tax of the wholly owned subsidiary under Section 23800.5 and an amount equal to that amount shall be due and payable on the date the installment is required to be paid. For purposes of determining which installment is the next installment of estimated tax under subdivision (b), subdivision (b) shall be modified by substituting includes the tax of a wholly owned subsidiary under Section 23800.5 for exceeds the minimum tax specified by Section 23153.(d)The amendments made to this section by Section 1 of Chapter 1 of the First Extraordinary Session of the Statutes of 2008 shall apply to installments due for each taxable year beginning on or after January 1, 2009, and before January 1, 2010.(e)The amendments made to this section by Section 2 of Chapter 15 of the Fourth Extraordinary Session of the Statutes of 2009 shall apply to installments due for each taxable year beginning on or after January 1, 2010. | |
| 45 | 42 | ||
| 46 | 43 | The people of the State of California do enact as follows: | |
| 47 | 44 | ||
| 48 | 45 | ## The people of the State of California do enact as follows: | |
| 49 | 46 | ||
| 50 | - | SECTION 1. Section | |
| 47 | + | SECTION 1. Section 23153 of the Revenue and Taxation Code is amended to read:23153. (a) Every corporation described in subdivision (b) shall be subject to the minimum franchise tax specified in subdivision (d) from the earlier of the date of incorporation, qualification, or commencing to do business within this state, until the effective date of dissolution or withdrawal as provided in Section 23331 or, if later, the date the corporation ceases to do business within the limits of this state.(b) Unless expressly exempted by this part or the California Constitution, subdivision (a) shall apply to each of the following:(1) Every corporation that is incorporated under the laws of this state.(2) Every corporation that is qualified to transact intrastate business in this state pursuant to Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code.(3) Every corporation that is doing business in this state.(c) The following entities are not subject to the minimum franchise tax specified in this section:(1) Credit unions.(2) Nonprofit cooperative associations organized pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code that have been issued the certificate of the board of supervisors prepared pursuant to Section 54042 of the Food and Agricultural Code. The association shall be exempt from the minimum franchise tax for five consecutive taxable years, commencing with the first taxable year for which the certificate is issued pursuant to subdivision (b) of Section 54042 of the Food and Agricultural Code. This paragraph only applies to nonprofit cooperative associations organized on or after January 1, 1994.(d) (1) Except as provided in paragraph (2), paragraph (1) of subdivision (f) of Section 23151, paragraph (1) of subdivision (f) of Section 23181, and paragraph (1) of subdivision (c) of Section 23183, corporations subject to the minimum franchise tax shall pay annually to the state a minimum franchise tax of eight hundred dollars ($800).(2) The minimum franchise tax shall be twenty-five dollars ($25) for each of the following:(A) A corporation formed under the laws of this state whose principal business when formed was gold mining, which is inactive and has not done business within the limits of the state since 1950.(B) A corporation formed under the laws of this state whose principal business when formed was quicksilver mining, which is inactive and has not done business within the limits of the state since 1971, or has been inactive for a period of 24 consecutive months or more.(3) For purposes of paragraph (2), a corporation shall not be considered to have done business if it engages in business other than mining.(e) Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 1999, and before January 1, 2000, every qualified new corporation shall pay annually to the state a minimum franchise tax of five hundred dollars ($500) for the second taxable year. This subdivision shall apply to any corporation that is a qualified new corporation and is incorporated on or after January 1, 1999, and before January 1, 2000.(1) The determination of the gross receipts of a corporation, for purposes of this subdivision, shall be made by including the gross receipts of each member of the commonly controlled group, as defined in Section 25105, of which the corporation is a member.(2) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(3) Qualified new corporation means a corporation that is incorporated under the laws of this state or has qualified to transact intrastate business in this state, that begins business operations at or after the time of its incorporation and that reasonably estimates that it will have gross receipts, less returns and allowances, reportable to this state for the taxable year of one million dollars ($1,000,000) or less. Qualified new corporation does not include any corporation that began business operations as a sole proprietorship, a partnership, or any other form of business entity prior to its incorporation. This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(4) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, or to the formation of any subsidiary corporation, to the extent applicable.(5) For any taxable year beginning on or after January 1, 1999, and before January 1, 2000, if a corporation has qualified to pay five hundred dollars ($500) for the second taxable year under this subdivision, but in its second taxable year, the corporations gross receipts, as determined under paragraphs (1) and (2), exceed one million dollars ($1,000,000), an additional tax in the amount equal to three hundred dollars ($300) for the second taxable year shall be due and payable by the corporation on the due date of its return, without regard to extension, for that year.(f) (1) Notwithstanding subdivision (a), every corporation that incorporates or qualifies to do business in this state on or after January 1, 2000, shall not be subject to the minimum franchise tax for its first taxable year.(2) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, and qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, to the extent applicable.(3) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of avoiding payment of its minimum franchise tax.(g) Notwithstanding subdivision (a), a domestic corporation, as defined in Section 167 of the Corporations Code, that files a certificate of dissolution in the office of the Secretary of State pursuant to subdivision (b) of Section 1905 of the Corporations Code, prior to its amendment by the act amending this subdivision, and that does not thereafter do business shall not be subject to the minimum franchise tax for taxable years beginning on or after the date of that filing.(h) The minimum franchise tax imposed by paragraph (1) of subdivision (d) shall not be increased by the Legislature by more than 10 percent during any calendar year.(i) (1) Notwithstanding subdivision (a), a corporation that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the minimum franchise tax for any taxable year the owner is deployed and the corporation operates at a loss or ceases operation.(2) The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation.(3) For the purposes of this subdivision, all of the following definitions apply:(A) Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following:(i) Temporary duty for the sole purpose of training or processing.(ii) A permanent change of station.(B) Operates at a loss means negative net income as defined in Section 24341.(C) Small business means a corporation with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less.(4) This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018.(j) (1) Notwithstanding subdivision (a), a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and second taxable year shall not be subject to the minimum franchise tax for its first and second taxable years.(2) For purposes of this subdivision:(A) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(B) New corporation means a corporation that, on or after January 1, 2019, is first incorporated under the laws of this state or has first qualified to transact intrastate business in this state that begins business operations at or after the time of its incorporation. New corporation does not include any corporation that began business operations as, or acquired its business operations from, a sole proprietorship, a limited liability partnership, or any other form of business entity prior to its incorporation or any corporation that acquired its business operations from a corporation.(C) Small business means a limited partnership that has gross receipts, less returns and allowances, reportable to this state for the taxable year of five thousand dollars ($5,000) or less.(3) (A) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(B) This subdivision shall not apply to a corporation that does not file a timely return. | |
| 51 | 48 | ||
| 52 | - | SECTION 1. Section | |
| 49 | + | SECTION 1. Section 23153 of the Revenue and Taxation Code is amended to read: | |
| 53 | 50 | ||
| 54 | 51 | ### SECTION 1. | |
| 55 | 52 | ||
| 56 | - | 17935 | |
| 53 | + | 23153. (a) Every corporation described in subdivision (b) shall be subject to the minimum franchise tax specified in subdivision (d) from the earlier of the date of incorporation, qualification, or commencing to do business within this state, until the effective date of dissolution or withdrawal as provided in Section 23331 or, if later, the date the corporation ceases to do business within the limits of this state.(b) Unless expressly exempted by this part or the California Constitution, subdivision (a) shall apply to each of the following:(1) Every corporation that is incorporated under the laws of this state.(2) Every corporation that is qualified to transact intrastate business in this state pursuant to Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code.(3) Every corporation that is doing business in this state.(c) The following entities are not subject to the minimum franchise tax specified in this section:(1) Credit unions.(2) Nonprofit cooperative associations organized pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code that have been issued the certificate of the board of supervisors prepared pursuant to Section 54042 of the Food and Agricultural Code. The association shall be exempt from the minimum franchise tax for five consecutive taxable years, commencing with the first taxable year for which the certificate is issued pursuant to subdivision (b) of Section 54042 of the Food and Agricultural Code. This paragraph only applies to nonprofit cooperative associations organized on or after January 1, 1994.(d) (1) Except as provided in paragraph (2), paragraph (1) of subdivision (f) of Section 23151, paragraph (1) of subdivision (f) of Section 23181, and paragraph (1) of subdivision (c) of Section 23183, corporations subject to the minimum franchise tax shall pay annually to the state a minimum franchise tax of eight hundred dollars ($800).(2) The minimum franchise tax shall be twenty-five dollars ($25) for each of the following:(A) A corporation formed under the laws of this state whose principal business when formed was gold mining, which is inactive and has not done business within the limits of the state since 1950.(B) A corporation formed under the laws of this state whose principal business when formed was quicksilver mining, which is inactive and has not done business within the limits of the state since 1971, or has been inactive for a period of 24 consecutive months or more.(3) For purposes of paragraph (2), a corporation shall not be considered to have done business if it engages in business other than mining.(e) Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 1999, and before January 1, 2000, every qualified new corporation shall pay annually to the state a minimum franchise tax of five hundred dollars ($500) for the second taxable year. This subdivision shall apply to any corporation that is a qualified new corporation and is incorporated on or after January 1, 1999, and before January 1, 2000.(1) The determination of the gross receipts of a corporation, for purposes of this subdivision, shall be made by including the gross receipts of each member of the commonly controlled group, as defined in Section 25105, of which the corporation is a member.(2) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(3) Qualified new corporation means a corporation that is incorporated under the laws of this state or has qualified to transact intrastate business in this state, that begins business operations at or after the time of its incorporation and that reasonably estimates that it will have gross receipts, less returns and allowances, reportable to this state for the taxable year of one million dollars ($1,000,000) or less. Qualified new corporation does not include any corporation that began business operations as a sole proprietorship, a partnership, or any other form of business entity prior to its incorporation. This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(4) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, or to the formation of any subsidiary corporation, to the extent applicable.(5) For any taxable year beginning on or after January 1, 1999, and before January 1, 2000, if a corporation has qualified to pay five hundred dollars ($500) for the second taxable year under this subdivision, but in its second taxable year, the corporations gross receipts, as determined under paragraphs (1) and (2), exceed one million dollars ($1,000,000), an additional tax in the amount equal to three hundred dollars ($300) for the second taxable year shall be due and payable by the corporation on the due date of its return, without regard to extension, for that year.(f) (1) Notwithstanding subdivision (a), every corporation that incorporates or qualifies to do business in this state on or after January 1, 2000, shall not be subject to the minimum franchise tax for its first taxable year.(2) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, and qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, to the extent applicable.(3) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of avoiding payment of its minimum franchise tax.(g) Notwithstanding subdivision (a), a domestic corporation, as defined in Section 167 of the Corporations Code, that files a certificate of dissolution in the office of the Secretary of State pursuant to subdivision (b) of Section 1905 of the Corporations Code, prior to its amendment by the act amending this subdivision, and that does not thereafter do business shall not be subject to the minimum franchise tax for taxable years beginning on or after the date of that filing.(h) The minimum franchise tax imposed by paragraph (1) of subdivision (d) shall not be increased by the Legislature by more than 10 percent during any calendar year.(i) (1) Notwithstanding subdivision (a), a corporation that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the minimum franchise tax for any taxable year the owner is deployed and the corporation operates at a loss or ceases operation.(2) The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation.(3) For the purposes of this subdivision, all of the following definitions apply:(A) Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following:(i) Temporary duty for the sole purpose of training or processing.(ii) A permanent change of station.(B) Operates at a loss means negative net income as defined in Section 24341.(C) Small business means a corporation with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less.(4) This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018.(j) (1) Notwithstanding subdivision (a), a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and second taxable year shall not be subject to the minimum franchise tax for its first and second taxable years.(2) For purposes of this subdivision:(A) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(B) New corporation means a corporation that, on or after January 1, 2019, is first incorporated under the laws of this state or has first qualified to transact intrastate business in this state that begins business operations at or after the time of its incorporation. New corporation does not include any corporation that began business operations as, or acquired its business operations from, a sole proprietorship, a limited liability partnership, or any other form of business entity prior to its incorporation or any corporation that acquired its business operations from a corporation.(C) Small business means a limited partnership that has gross receipts, less returns and allowances, reportable to this state for the taxable year of five thousand dollars ($5,000) or less.(3) (A) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(B) This subdivision shall not apply to a corporation that does not file a timely return. | |
| 57 | 54 | ||
| 58 | - | 17935 | |
| 55 | + | 23153. (a) Every corporation described in subdivision (b) shall be subject to the minimum franchise tax specified in subdivision (d) from the earlier of the date of incorporation, qualification, or commencing to do business within this state, until the effective date of dissolution or withdrawal as provided in Section 23331 or, if later, the date the corporation ceases to do business within the limits of this state.(b) Unless expressly exempted by this part or the California Constitution, subdivision (a) shall apply to each of the following:(1) Every corporation that is incorporated under the laws of this state.(2) Every corporation that is qualified to transact intrastate business in this state pursuant to Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code.(3) Every corporation that is doing business in this state.(c) The following entities are not subject to the minimum franchise tax specified in this section:(1) Credit unions.(2) Nonprofit cooperative associations organized pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code that have been issued the certificate of the board of supervisors prepared pursuant to Section 54042 of the Food and Agricultural Code. The association shall be exempt from the minimum franchise tax for five consecutive taxable years, commencing with the first taxable year for which the certificate is issued pursuant to subdivision (b) of Section 54042 of the Food and Agricultural Code. This paragraph only applies to nonprofit cooperative associations organized on or after January 1, 1994.(d) (1) Except as provided in paragraph (2), paragraph (1) of subdivision (f) of Section 23151, paragraph (1) of subdivision (f) of Section 23181, and paragraph (1) of subdivision (c) of Section 23183, corporations subject to the minimum franchise tax shall pay annually to the state a minimum franchise tax of eight hundred dollars ($800).(2) The minimum franchise tax shall be twenty-five dollars ($25) for each of the following:(A) A corporation formed under the laws of this state whose principal business when formed was gold mining, which is inactive and has not done business within the limits of the state since 1950.(B) A corporation formed under the laws of this state whose principal business when formed was quicksilver mining, which is inactive and has not done business within the limits of the state since 1971, or has been inactive for a period of 24 consecutive months or more.(3) For purposes of paragraph (2), a corporation shall not be considered to have done business if it engages in business other than mining.(e) Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 1999, and before January 1, 2000, every qualified new corporation shall pay annually to the state a minimum franchise tax of five hundred dollars ($500) for the second taxable year. This subdivision shall apply to any corporation that is a qualified new corporation and is incorporated on or after January 1, 1999, and before January 1, 2000.(1) The determination of the gross receipts of a corporation, for purposes of this subdivision, shall be made by including the gross receipts of each member of the commonly controlled group, as defined in Section 25105, of which the corporation is a member.(2) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(3) Qualified new corporation means a corporation that is incorporated under the laws of this state or has qualified to transact intrastate business in this state, that begins business operations at or after the time of its incorporation and that reasonably estimates that it will have gross receipts, less returns and allowances, reportable to this state for the taxable year of one million dollars ($1,000,000) or less. Qualified new corporation does not include any corporation that began business operations as a sole proprietorship, a partnership, or any other form of business entity prior to its incorporation. This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(4) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, or to the formation of any subsidiary corporation, to the extent applicable.(5) For any taxable year beginning on or after January 1, 1999, and before January 1, 2000, if a corporation has qualified to pay five hundred dollars ($500) for the second taxable year under this subdivision, but in its second taxable year, the corporations gross receipts, as determined under paragraphs (1) and (2), exceed one million dollars ($1,000,000), an additional tax in the amount equal to three hundred dollars ($300) for the second taxable year shall be due and payable by the corporation on the due date of its return, without regard to extension, for that year.(f) (1) Notwithstanding subdivision (a), every corporation that incorporates or qualifies to do business in this state on or after January 1, 2000, shall not be subject to the minimum franchise tax for its first taxable year.(2) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, and qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, to the extent applicable.(3) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of avoiding payment of its minimum franchise tax.(g) Notwithstanding subdivision (a), a domestic corporation, as defined in Section 167 of the Corporations Code, that files a certificate of dissolution in the office of the Secretary of State pursuant to subdivision (b) of Section 1905 of the Corporations Code, prior to its amendment by the act amending this subdivision, and that does not thereafter do business shall not be subject to the minimum franchise tax for taxable years beginning on or after the date of that filing.(h) The minimum franchise tax imposed by paragraph (1) of subdivision (d) shall not be increased by the Legislature by more than 10 percent during any calendar year.(i) (1) Notwithstanding subdivision (a), a corporation that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the minimum franchise tax for any taxable year the owner is deployed and the corporation operates at a loss or ceases operation.(2) The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation.(3) For the purposes of this subdivision, all of the following definitions apply:(A) Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following:(i) Temporary duty for the sole purpose of training or processing.(ii) A permanent change of station.(B) Operates at a loss means negative net income as defined in Section 24341.(C) Small business means a corporation with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less.(4) This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018.(j) (1) Notwithstanding subdivision (a), a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and second taxable year shall not be subject to the minimum franchise tax for its first and second taxable years.(2) For purposes of this subdivision:(A) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(B) New corporation means a corporation that, on or after January 1, 2019, is first incorporated under the laws of this state or has first qualified to transact intrastate business in this state that begins business operations at or after the time of its incorporation. New corporation does not include any corporation that began business operations as, or acquired its business operations from, a sole proprietorship, a limited liability partnership, or any other form of business entity prior to its incorporation or any corporation that acquired its business operations from a corporation.(C) Small business means a limited partnership that has gross receipts, less returns and allowances, reportable to this state for the taxable year of five thousand dollars ($5,000) or less.(3) (A) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(B) This subdivision shall not apply to a corporation that does not file a timely return. | |
| 59 | 56 | ||
| 60 | - | 17935 | |
| 57 | + | 23153. (a) Every corporation described in subdivision (b) shall be subject to the minimum franchise tax specified in subdivision (d) from the earlier of the date of incorporation, qualification, or commencing to do business within this state, until the effective date of dissolution or withdrawal as provided in Section 23331 or, if later, the date the corporation ceases to do business within the limits of this state.(b) Unless expressly exempted by this part or the California Constitution, subdivision (a) shall apply to each of the following:(1) Every corporation that is incorporated under the laws of this state.(2) Every corporation that is qualified to transact intrastate business in this state pursuant to Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code.(3) Every corporation that is doing business in this state.(c) The following entities are not subject to the minimum franchise tax specified in this section:(1) Credit unions.(2) Nonprofit cooperative associations organized pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code that have been issued the certificate of the board of supervisors prepared pursuant to Section 54042 of the Food and Agricultural Code. The association shall be exempt from the minimum franchise tax for five consecutive taxable years, commencing with the first taxable year for which the certificate is issued pursuant to subdivision (b) of Section 54042 of the Food and Agricultural Code. This paragraph only applies to nonprofit cooperative associations organized on or after January 1, 1994.(d) (1) Except as provided in paragraph (2), paragraph (1) of subdivision (f) of Section 23151, paragraph (1) of subdivision (f) of Section 23181, and paragraph (1) of subdivision (c) of Section 23183, corporations subject to the minimum franchise tax shall pay annually to the state a minimum franchise tax of eight hundred dollars ($800).(2) The minimum franchise tax shall be twenty-five dollars ($25) for each of the following:(A) A corporation formed under the laws of this state whose principal business when formed was gold mining, which is inactive and has not done business within the limits of the state since 1950.(B) A corporation formed under the laws of this state whose principal business when formed was quicksilver mining, which is inactive and has not done business within the limits of the state since 1971, or has been inactive for a period of 24 consecutive months or more.(3) For purposes of paragraph (2), a corporation shall not be considered to have done business if it engages in business other than mining.(e) Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 1999, and before January 1, 2000, every qualified new corporation shall pay annually to the state a minimum franchise tax of five hundred dollars ($500) for the second taxable year. This subdivision shall apply to any corporation that is a qualified new corporation and is incorporated on or after January 1, 1999, and before January 1, 2000.(1) The determination of the gross receipts of a corporation, for purposes of this subdivision, shall be made by including the gross receipts of each member of the commonly controlled group, as defined in Section 25105, of which the corporation is a member.(2) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(3) Qualified new corporation means a corporation that is incorporated under the laws of this state or has qualified to transact intrastate business in this state, that begins business operations at or after the time of its incorporation and that reasonably estimates that it will have gross receipts, less returns and allowances, reportable to this state for the taxable year of one million dollars ($1,000,000) or less. Qualified new corporation does not include any corporation that began business operations as a sole proprietorship, a partnership, or any other form of business entity prior to its incorporation. This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(4) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, or to the formation of any subsidiary corporation, to the extent applicable.(5) For any taxable year beginning on or after January 1, 1999, and before January 1, 2000, if a corporation has qualified to pay five hundred dollars ($500) for the second taxable year under this subdivision, but in its second taxable year, the corporations gross receipts, as determined under paragraphs (1) and (2), exceed one million dollars ($1,000,000), an additional tax in the amount equal to three hundred dollars ($300) for the second taxable year shall be due and payable by the corporation on the due date of its return, without regard to extension, for that year.(f) (1) Notwithstanding subdivision (a), every corporation that incorporates or qualifies to do business in this state on or after January 1, 2000, shall not be subject to the minimum franchise tax for its first taxable year.(2) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, and qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, to the extent applicable.(3) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of avoiding payment of its minimum franchise tax.(g) Notwithstanding subdivision (a), a domestic corporation, as defined in Section 167 of the Corporations Code, that files a certificate of dissolution in the office of the Secretary of State pursuant to subdivision (b) of Section 1905 of the Corporations Code, prior to its amendment by the act amending this subdivision, and that does not thereafter do business shall not be subject to the minimum franchise tax for taxable years beginning on or after the date of that filing.(h) The minimum franchise tax imposed by paragraph (1) of subdivision (d) shall not be increased by the Legislature by more than 10 percent during any calendar year.(i) (1) Notwithstanding subdivision (a), a corporation that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the minimum franchise tax for any taxable year the owner is deployed and the corporation operates at a loss or ceases operation.(2) The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation.(3) For the purposes of this subdivision, all of the following definitions apply:(A) Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following:(i) Temporary duty for the sole purpose of training or processing.(ii) A permanent change of station.(B) Operates at a loss means negative net income as defined in Section 24341.(C) Small business means a corporation with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less.(4) This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018.(j) (1) Notwithstanding subdivision (a), a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and second taxable year shall not be subject to the minimum franchise tax for its first and second taxable years.(2) For purposes of this subdivision:(A) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120.(B) New corporation means a corporation that, on or after January 1, 2019, is first incorporated under the laws of this state or has first qualified to transact intrastate business in this state that begins business operations at or after the time of its incorporation. New corporation does not include any corporation that began business operations as, or acquired its business operations from, a sole proprietorship, a limited liability partnership, or any other form of business entity prior to its incorporation or any corporation that acquired its business operations from a corporation.(C) Small business means a limited partnership that has gross receipts, less returns and allowances, reportable to this state for the taxable year of five thousand dollars ($5,000) or less.(3) (A) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax.(B) This subdivision shall not apply to a corporation that does not file a timely return. | |
| 61 | 58 | ||
| 62 | 59 | ||
| 63 | 60 | ||
| 64 | - | ||
| 61 | + | 23153. (a) Every corporation described in subdivision (b) shall be subject to the minimum franchise tax specified in subdivision (d) from the earlier of the date of incorporation, qualification, or commencing to do business within this state, until the effective date of dissolution or withdrawal as provided in Section 23331 or, if later, the date the corporation ceases to do business within the limits of this state. | |
| 65 | 62 | ||
| 66 | - | (b) | |
| 63 | + | (b) Unless expressly exempted by this part or the California Constitution, subdivision (a) shall apply to each of the following: | |
| 67 | 64 | ||
| 68 | - | ( | |
| 65 | + | (1) Every corporation that is incorporated under the laws of this state. | |
| 69 | 66 | ||
| 70 | - | ( | |
| 67 | + | (2) Every corporation that is qualified to transact intrastate business in this state pursuant to Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code. | |
| 71 | 68 | ||
| 72 | - | ( | |
| 69 | + | (3) Every corporation that is doing business in this state. | |
| 73 | 70 | ||
| 74 | - | ( | |
| 71 | + | (c) The following entities are not subject to the minimum franchise tax specified in this section: | |
| 75 | 72 | ||
| 76 | - | ||
| 73 | + | (1) Credit unions. | |
| 77 | 74 | ||
| 78 | - | (2) | |
| 75 | + | (2) Nonprofit cooperative associations organized pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code that have been issued the certificate of the board of supervisors prepared pursuant to Section 54042 of the Food and Agricultural Code. The association shall be exempt from the minimum franchise tax for five consecutive taxable years, commencing with the first taxable year for which the certificate is issued pursuant to subdivision (b) of Section 54042 of the Food and Agricultural Code. This paragraph only applies to nonprofit cooperative associations organized on or after January 1, 1994. | |
| 79 | 76 | ||
| 80 | - | ( | |
| 77 | + | (d) (1) Except as provided in paragraph (2), paragraph (1) of subdivision (f) of Section 23151, paragraph (1) of subdivision (f) of Section 23181, and paragraph (1) of subdivision (c) of Section 23183, corporations subject to the minimum franchise tax shall pay annually to the state a minimum franchise tax of eight hundred dollars ($800). | |
| 81 | 78 | ||
| 82 | - | ( | |
| 79 | + | (2) The minimum franchise tax shall be twenty-five dollars ($25) for each of the following: | |
| 83 | 80 | ||
| 84 | - | ( | |
| 81 | + | (A) A corporation formed under the laws of this state whose principal business when formed was gold mining, which is inactive and has not done business within the limits of the state since 1950. | |
| 85 | 82 | ||
| 86 | - | ( | |
| 83 | + | (B) A corporation formed under the laws of this state whose principal business when formed was quicksilver mining, which is inactive and has not done business within the limits of the state since 1971, or has been inactive for a period of 24 consecutive months or more. | |
| 87 | 84 | ||
| 88 | - | ( | |
| 85 | + | (3) For purposes of paragraph (2), a corporation shall not be considered to have done business if it engages in business other than mining. | |
| 89 | 86 | ||
| 90 | - | ||
| 87 | + | (e) Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 1999, and before January 1, 2000, every qualified new corporation shall pay annually to the state a minimum franchise tax of five hundred dollars ($500) for the second taxable year. This subdivision shall apply to any corporation that is a qualified new corporation and is incorporated on or after January 1, 1999, and before January 1, 2000. | |
| 91 | 88 | ||
| 92 | - | ||
| 89 | + | (1) The determination of the gross receipts of a corporation, for purposes of this subdivision, shall be made by including the gross receipts of each member of the commonly controlled group, as defined in Section 25105, of which the corporation is a member. | |
| 93 | 90 | ||
| 94 | - | ||
| 91 | + | (2) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120. | |
| 95 | 92 | ||
| 96 | - | ||
| 93 | + | (3) Qualified new corporation means a corporation that is incorporated under the laws of this state or has qualified to transact intrastate business in this state, that begins business operations at or after the time of its incorporation and that reasonably estimates that it will have gross receipts, less returns and allowances, reportable to this state for the taxable year of one million dollars ($1,000,000) or less. Qualified new corporation does not include any corporation that began business operations as a sole proprietorship, a partnership, or any other form of business entity prior to its incorporation. This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax. | |
| 97 | 94 | ||
| 98 | - | ||
| 95 | + | (4) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, or to the formation of any subsidiary corporation, to the extent applicable. | |
| 99 | 96 | ||
| 100 | - | ||
| 97 | + | (5) For any taxable year beginning on or after January 1, 1999, and before January 1, 2000, if a corporation has qualified to pay five hundred dollars ($500) for the second taxable year under this subdivision, but in its second taxable year, the corporations gross receipts, as determined under paragraphs (1) and (2), exceed one million dollars ($1,000,000), an additional tax in the amount equal to three hundred dollars ($300) for the second taxable year shall be due and payable by the corporation on the due date of its return, without regard to extension, for that year. | |
| 101 | 98 | ||
| 99 | + | (f) (1) Notwithstanding subdivision (a), every corporation that incorporates or qualifies to do business in this state on or after January 1, 2000, shall not be subject to the minimum franchise tax for its first taxable year. | |
| 102 | 100 | ||
| 101 | + | (2) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, and qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, to the extent applicable. | |
| 103 | 102 | ||
| 104 | - | ||
| 103 | + | (3) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of avoiding payment of its minimum franchise tax. | |
| 105 | 104 | ||
| 106 | - | ( | |
| 105 | + | (g) Notwithstanding subdivision (a), a domestic corporation, as defined in Section 167 of the Corporations Code, that files a certificate of dissolution in the office of the Secretary of State pursuant to subdivision (b) of Section 1905 of the Corporations Code, prior to its amendment by the act amending this subdivision, and that does not thereafter do business shall not be subject to the minimum franchise tax for taxable years beginning on or after the date of that filing. | |
| 107 | 106 | ||
| 108 | - | ( | |
| 107 | + | (h) The minimum franchise tax imposed by paragraph (1) of subdivision (d) shall not be increased by the Legislature by more than 10 percent during any calendar year. | |
| 109 | 108 | ||
| 110 | - | (c) The tax assessed under this section shall be due and payable on or before the 15th day of the fourth month of the taxable year. | |
| 111 | - | ||
| 112 | - | (d) For purposes of this section, limited liability company means an organization, other than a limited liability company that is exempt from the tax and fees imposed under this chapter pursuant to Section 23701h or Section 23701x, that is formed by one or more persons under the law of this state, any other country, or any other state, as a limited liability company and that is not taxable as a corporation for California tax purposes. | |
| 113 | - | ||
| 114 | - | (e) Notwithstanding anything in this section to the contrary, if the office of the Secretary of State files a certificate of cancellation pursuant to Section 17707.02 of the Corporations Code for any limited liability company, then paragraph (1) of subdivision (f) of Section 23153 shall apply to that limited liability company as if the limited liability company were properly treated as a corporation for that limited purpose only, and paragraph (2) of subdivision (f) of Section 23153 shall not apply. Nothing in this subdivision entitles a limited liability company to receive a reimbursement for any annual taxes or fees already paid. | |
| 115 | - | ||
| 116 | - | (f) (1) Notwithstanding any provision of this section to the contrary, a limited liability company that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the tax imposed under this section for any taxable year the owner is deployed and the limited liability company operates at a loss or ceases operation. | |
| 109 | + | (i) (1) Notwithstanding subdivision (a), a corporation that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the minimum franchise tax for any taxable year the owner is deployed and the corporation operates at a loss or ceases operation. | |
| 117 | 110 | ||
| 118 | 111 | (2) The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation. | |
| 119 | 112 | ||
| 120 | 113 | (3) For the purposes of this subdivision, all of the following definitions apply: | |
| 121 | 114 | ||
| 122 | 115 | (A) Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following: | |
| 123 | 116 | ||
| 124 | 117 | (i) Temporary duty for the sole purpose of training or processing. | |
| 125 | 118 | ||
| 126 | 119 | (ii) A permanent change of station. | |
| 127 | 120 | ||
| 128 | - | (B) Operates at a loss means | |
| 121 | + | (B) Operates at a loss means negative net income as defined in Section 24341. | |
| 129 | 122 | ||
| 130 | - | (C) Small business means a | |
| 123 | + | (C) Small business means a corporation with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less. | |
| 131 | 124 | ||
| 132 | 125 | (4) This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018. | |
| 133 | 126 | ||
| 134 | - | ( | |
| 127 | + | (j) (1) Notwithstanding subdivision (a), a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and second taxable year shall not be subject to the minimum franchise tax for its first and second taxable years. | |
| 135 | 128 | ||
| 136 | 129 | (2) For purposes of this subdivision: | |
| 137 | 130 | ||
| 138 | 131 | (A) Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120. | |
| 139 | 132 | ||
| 140 | - | (B) New | |
| 133 | + | (B) New corporation means a corporation that, on or after January 1, 2019, is first incorporated under the laws of this state or has first qualified to transact intrastate business in this state that begins business operations at or after the time of its incorporation. New corporation does not include any corporation that began business operations as, or acquired its business operations from, a sole proprietorship, a limited liability partnership, or any other form of business entity prior to its incorporation or any corporation that acquired its business operations from a corporation. | |
| 141 | 134 | ||
| 142 | - | (C) Small business means a limited | |
| 135 | + | (C) Small business means a limited partnership that has gross receipts, less returns and allowances, reportable to this state for the taxable year of five thousand dollars ($5,000) or less. | |
| 143 | 136 | ||
| 144 | - | (3) (A) This subdivision shall not apply to any | |
| 137 | + | (3) (A) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax. | |
| 145 | 138 | ||
| 146 | - | (B) This subdivision shall not apply to a | |
| 139 | + | (B) This subdivision shall not apply to a corporation that does not file a timely return. | |
| 147 | 140 | ||
| 148 | - | SEC. | |
| 141 | + | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 149 | 142 | ||
| 150 | - | SEC. | |
| 143 | + | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 151 | 144 | ||
| 152 | - | SEC. | |
| 145 | + | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 153 | 146 | ||
| 154 | - | ### SEC. | |
| 147 | + | ### SEC. 2. | |
| 155 | 148 | ||
| 156 | 149 | ||
| 157 | 150 | ||
| 158 | 151 | ||
| 159 | 152 | ||
| 160 | - | (a) | |
| 153 | + | (a)For each taxable year beginning on or after January 1, 1997, a limited liability company doing business in this state (as defined in Section 23101) shall pay annually to this state a tax for the privilege of doing business in this state in an amount equal to the applicable amount specified in subdivision (d) of Section 23153 for the taxable year. | |
| 161 | 154 | ||
| 162 | 155 | ||
| 163 | 156 | ||
| 164 | - | (b) | |
| 157 | + | (b)(1)In addition to any limited liability company that is doing business in this state and is therefore subject to the tax imposed by subdivision (a), for each taxable year beginning on or after January 1, 1997, a limited liability company shall pay annually the tax prescribed in subdivision (a) if articles of organization have been accepted, or a certificate of registration has been issued, by the office of the Secretary of State. The tax shall be paid for each taxable year, or part thereof, until a certificate of cancellation of registration or of articles of organization is filed on behalf of the limited liability company with the office of the Secretary of State. | |
| 165 | 158 | ||
| 166 | 159 | ||
| 167 | 160 | ||
| 168 | - | ( | |
| 161 | + | (2)If a taxpayer files a return with the Franchise Tax Board that is designated as its final return, the Franchise Tax Board shall notify the taxpayer that the annual tax shall continue to be due annually until a certificate of dissolution is filed with the Secretary of State pursuant to Section 17707.08 of the Corporations Code or a certificate of cancellation is filed with the Secretary of State pursuant to Section 17708.06 of the Corporations Code. | |
| 169 | 162 | ||
| 170 | 163 | ||
| 171 | 164 | ||
| 172 | - | ( | |
| 165 | + | (c)(1)The tax assessed under this section shall be due and payable according to one of the following: | |
| 173 | 166 | ||
| 174 | 167 | ||
| 175 | 168 | ||
| 176 | - | ( | |
| 169 | + | (A)On or before the 15th day of the fourth month of the taxable year. | |
| 177 | 170 | ||
| 178 | 171 | ||
| 179 | 172 | ||
| 180 | - | ( | |
| 173 | + | (B)In three equal installments on or before the 15th day of the 4th, 8th, and 12th months of the taxable year. | |
| 181 | 174 | ||
| 182 | 175 | ||
| 183 | 176 | ||
| 184 | - | ( | |
| 177 | + | (C)In two equal installments, with the first installment on or before the 15th day of the fourth month of the taxable year and the second installment on or before the 15th day of the 12th month of the taxable year. | |
| 185 | 178 | ||
| 186 | 179 | ||
| 187 | 180 | ||
| 188 | - | (2) | |
| 181 | + | (2)The Franchise Tax Board shall develop procedures for taxpayers to make an annual binding election, by the 15th day of the second month of the taxable year, with the Franchise Tax Board to elect the alternate payment option under subparagraph (B) or (C). | |
| 189 | 182 | ||
| 190 | 183 | ||
| 191 | 184 | ||
| 192 | - | (d) | |
| 185 | + | (d)For purposes of this section, limited liability company means an organization, other than a limited liability company that is exempt from the tax and fees imposed under this chapter pursuant to Section 23701h or Section 23701x, that is formed by one or more persons under the law of this state, any other country, or any other state, as a limited liability company and that is not taxable as a corporation for California tax purposes. | |
| 193 | 186 | ||
| 194 | 187 | ||
| 195 | 188 | ||
| 196 | - | ( | |
| 189 | + | (e)Notwithstanding anything in this section to the contrary, if the office of the Secretary of State files a certificate of cancellation pursuant to Section 17707.02 of the Corporations Code for any limited liability company, then paragraph (1) of subdivision (f) of Section 23153 shall apply to that limited liability company as if the limited liability company were properly treated as a corporation for that limited purpose only, and paragraph (2) of subdivision (f) of Section 23153 shall not apply. Nothing in this subdivision entitles a limited liability company to receive a reimbursement for any annual taxes or fees already paid. | |
| 197 | 190 | ||
| 198 | 191 | ||
| 199 | 192 | ||
| 200 | - | (A)A corporation formed under the laws of this state whose principal business when formed was gold mining, which is inactive and has not done business within the limits of the state since 1950. | |
| 201 | - | ||
| 202 | - | ||
| 203 | - | ||
| 204 | - | (B)A corporation formed under the laws of this state whose principal business when formed was quicksilver mining, which is inactive and has not done business within the limits of the state since 1971, or has been inactive for a period of 24 consecutive months or more. | |
| 205 | - | ||
| 206 | - | ||
| 207 | - | ||
| 208 | - | (3)For purposes of paragraph (2), a corporation shall not be considered to have done business if it engages in business other than mining. | |
| 209 | - | ||
| 210 | - | ||
| 211 | - | ||
| 212 | - | (e)Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 1999, and before January 1, 2000, every qualified new corporation shall pay annually to the state a minimum franchise tax of five hundred dollars ($500) for the second taxable year. This subdivision shall apply to any corporation that is a qualified new corporation and is incorporated on or after January 1, 1999, and before January 1, 2000. | |
| 213 | - | ||
| 214 | - | ||
| 215 | - | ||
| 216 | - | (1)The determination of the gross receipts of a corporation, for purposes of this subdivision, shall be made by including the gross receipts of each member of the commonly controlled group, as defined in Section 25105, of which the corporation is a member. | |
| 217 | - | ||
| 218 | - | ||
| 219 | - | ||
| 220 | - | (2)Gross receipts, less returns and allowances reportable to this state, means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120. | |
| 221 | - | ||
| 222 | - | ||
| 223 | - | ||
| 224 | - | (3)Qualified new corporation means a corporation that is incorporated under the laws of this state or has qualified to transact intrastate business in this state, that begins business operations at or after the time of its incorporation and that reasonably estimates that it will have gross receipts, less returns and allowances, reportable to this state for the taxable year of one million dollars ($1,000,000) or less. Qualified new corporation does not include any corporation that began business operations as a sole proprietorship, a partnership, or any other form of business entity prior to its incorporation. This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax. | |
| 225 | - | ||
| 226 | - | ||
| 227 | - | ||
| 228 | - | (4)This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, or to the formation of any subsidiary corporation, to the extent applicable. | |
| 229 | - | ||
| 230 | - | ||
| 231 | - | ||
| 232 | - | (5)For any taxable year beginning on or after January 1, 1999, and before January 1, 2000, if a corporation has qualified to pay five hundred dollars ($500) for the second taxable year under this subdivision, but in its second taxable year, the corporations gross receipts, as determined under paragraphs (1) and (2), exceed one million dollars ($1,000,000), an additional tax in the amount equal to three hundred dollars ($300) for the second taxable year shall be due and payable by the corporation on the due date of its return, without regard to extension, for that year. | |
| 233 | - | ||
| 234 | - | ||
| 235 | - | ||
| 236 | - | (f)(1)Notwithstanding subdivision (a), every corporation that incorporates or qualifies to do business in this state on or after January 1, 2000, shall not be subject to the minimum franchise tax for its first taxable year. | |
| 237 | - | ||
| 238 | - | ||
| 239 | - | ||
| 240 | - | (2)This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, and qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, to the extent applicable. | |
| 241 | - | ||
| 242 | - | ||
| 243 | - | ||
| 244 | - | (3)This subdivision shall not apply to any corporation that reorganizes solely for the purpose of avoiding payment of its minimum franchise tax. | |
| 245 | - | ||
| 246 | - | ||
| 247 | - | ||
| 248 | - | (g)Notwithstanding subdivision (a), a domestic corporation, as defined in Section 167 of the Corporations Code, that files a certificate of dissolution in the office of the Secretary of State pursuant to subdivision (b) of Section 1905 of the Corporations Code, prior to its amendment by the act amending this subdivision, and that does not thereafter do business shall not be subject to the minimum franchise tax for taxable years beginning on or after the date of that filing. | |
| 249 | - | ||
| 250 | - | ||
| 251 | - | ||
| 252 | - | (h)The minimum franchise tax imposed by paragraph (1) of subdivision (d) shall not be increased by the Legislature by more than 10 percent during any calendar year. | |
| 253 | - | ||
| 254 | - | ||
| 255 | - | ||
| 256 | - | (i)(1)Notwithstanding subdivision (a), a corporation that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the minimum franchise tax for any taxable year the owner is deployed and the corporation operates at a loss or ceases operation. | |
| 193 | + | (f)(1)Notwithstanding any provision of this section to the contrary, a limited liability company that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the tax imposed under this section for any taxable year the owner is deployed and the limited liability company operates at a loss or ceases operation. | |
| 257 | 194 | ||
| 258 | 195 | ||
| 259 | 196 | ||
| 260 | 197 | (2)The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for ceases operation. | |
| 261 | 198 | ||
| 262 | 199 | ||
| 263 | 200 | ||
| 264 | 201 | (3)For the purposes of this subdivision, all of the following definitions apply: | |
| 265 | 202 | ||
| 266 | 203 | ||
| 267 | 204 | ||
| 268 | 205 | (A)Deployed means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. Deployed does not include either of the following: | |
| 269 | 206 | ||
| 270 | 207 | ||
| 271 | 208 | ||
| 272 | 209 | (i)Temporary duty for the sole purpose of training or processing. | |
| 273 | 210 | ||
| 274 | 211 | ||
| 275 | 212 | ||
| 276 | 213 | (ii)A permanent change of station. | |
| 277 | 214 | ||
| 278 | 215 | ||
| 279 | 216 | ||
| 280 | - | (B)Operates at a loss means | |
| 217 | + | (B)Operates at a loss means a limited liability companys expenses exceed its receipts. | |
| 281 | 218 | ||
| 282 | 219 | ||
| 283 | 220 | ||
| 284 | - | (C)Small business means a | |
| 221 | + | (C)Small business means a limited liability company with total income from all sources derived from, or attributable, to the state of two hundred fifty thousand dollars ($250,000) or less. | |
| 285 | 222 | ||
| 286 | 223 | ||
| 287 | 224 | ||
| 288 | 225 | (4)This subdivision shall become inoperative for taxable years beginning on or after January 1, 2018. | |
| 289 | 226 | ||
| 290 | 227 | ||
| 291 | 228 | ||
| 292 | - | (j)(1)Notwithstanding subdivision (a), a corporation that is a new corporation in taxable years beginning on or after January 1, 2019, and is a small business in its first and second taxable year shall not be subject to the minimum franchise tax for its first and second taxable years. | |
| 293 | 229 | ||
| 294 | 230 | ||
| 295 | 231 | ||
| 296 | - | (2)For purposes of this subdivision: | |
| 232 | + | ||
| 233 | + | (a)(1)If the amount of estimated tax does not exceed the minimum tax specified by Section 23153, the entire amount of the estimated tax shall be due and payable according to one of the following: | |
| 297 | 234 | ||
| 298 | 235 | ||
| 299 | 236 | ||
| 300 | - | (A) | |
| 237 | + | (A)On or before the 15th day of the fourth month of the taxable year. | |
| 301 | 238 | ||
| 302 | 239 | ||
| 303 | 240 | ||
| 304 | - | (B) | |
| 241 | + | (B)In three equal installments on or before the 15th day of the 4th, 8th, and 12th months of the taxable year. | |
| 305 | 242 | ||
| 306 | 243 | ||
| 307 | 244 | ||
| 308 | - | (C) | |
| 245 | + | (C)In two equal installments, with the first installment on or before the 15th day of the fourth month of the taxable year and the second installment on or before the 15th day of the 12th month of the taxable year. | |
| 309 | 246 | ||
| 310 | 247 | ||
| 311 | 248 | ||
| 312 | - | ( | |
| 249 | + | (2)The Franchise Tax Board shall develop procedures for taxpayers to make an annual binding election, by the 15th day of the second month of the taxable year, with the Franchise Tax Board to elect the alternate payment option under subparagraph (B) or (C). | |
| 313 | 250 | ||
| 314 | 251 | ||
| 315 | 252 | ||
| 316 | - | (B)This subdivision shall not apply to a corporation that does not file a timely return. | |
| 253 | + | (b)Except as provided in subdivision (c), if the amount of estimated tax exceeds the minimum tax specified by Section 23153, the amount payable shall be paid in installments as follows: | |
| 254 | + | ||
| 255 | + | ||
| 256 | + | ||
| 257 | + | If the requirements The following percentages of the estimated tax shall be paid on the 15th day of the | |
| 258 | + | of this subdivision are first met 4th month 6th month 9th month 12th month | |
| 259 | + | Before the 1st day of the 4th month of the taxable year 30 (but not less than the minimum tax provided in Section 23153 and any tax under Section 23800.5) 40 0 30 | |
| 260 | + | After the last day of the 3rd month and before the 1st day of the 6th month of the taxable year __ 60 0 40 | |
| 261 | + | After the last day of the 5th month and before the 1st day of the 9th month of the taxable year __ __ 70 30 | |
| 262 | + | After the last day of the 8th month and before the 1st day of the 12th month of the taxable year __ __ __ 100 | |
| 263 | + | ||
| 264 | + | If the requirements | |
| 317 | 265 | ||
| 318 | 266 | ||
| 319 | 267 | ||
| 320 | 268 | ||
| 321 | 269 | ||
| 322 | - | This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 270 | + | The following percentages of the estimated tax shall be paid on the 15th day of the | |
| 271 | + | ||
| 272 | + | ||
| 273 | + | ||
| 274 | + | ||
| 275 | + | ||
| 276 | + | ||
| 277 | + | ||
| 278 | + | of this subdivision are first met | |
| 279 | + | ||
| 280 | + | ||
| 281 | + | ||
| 282 | + | 4th month | |
| 283 | + | ||
| 284 | + | ||
| 285 | + | ||
| 286 | + | 6th month | |
| 287 | + | ||
| 288 | + | ||
| 289 | + | ||
| 290 | + | 9th month | |
| 291 | + | ||
| 292 | + | ||
| 293 | + | ||
| 294 | + | 12th month | |
| 295 | + | ||
| 296 | + | ||
| 297 | + | ||
| 298 | + | Before the 1st day of the 4th month of the taxable year | |
| 299 | + | ||
| 300 | + | ||
| 301 | + | ||
| 302 | + | 30 (but not less than the minimum tax provided in Section 23153 and any tax under Section 23800.5) | |
| 303 | + | ||
| 304 | + | ||
| 305 | + | ||
| 306 | + | 40 | |
| 307 | + | ||
| 308 | + | ||
| 309 | + | ||
| 310 | + | 0 | |
| 311 | + | ||
| 312 | + | ||
| 313 | + | ||
| 314 | + | 30 | |
| 315 | + | ||
| 316 | + | ||
| 317 | + | ||
| 318 | + | After the last day of the 3rd month and before the 1st day of the 6th month of the taxable year | |
| 319 | + | ||
| 320 | + | ||
| 321 | + | ||
| 322 | + | __ | |
| 323 | + | ||
| 324 | + | ||
| 325 | + | ||
| 326 | + | 60 | |
| 327 | + | ||
| 328 | + | ||
| 329 | + | ||
| 330 | + | 0 | |
| 331 | + | ||
| 332 | + | ||
| 333 | + | ||
| 334 | + | 40 | |
| 335 | + | ||
| 336 | + | ||
| 337 | + | ||
| 338 | + | After the last day of the 5th month and before the 1st day of the 9th month of the taxable year | |
| 339 | + | ||
| 340 | + | ||
| 341 | + | ||
| 342 | + | __ | |
| 343 | + | ||
| 344 | + | ||
| 345 | + | ||
| 346 | + | __ | |
| 347 | + | ||
| 348 | + | ||
| 349 | + | ||
| 350 | + | 70 | |
| 351 | + | ||
| 352 | + | ||
| 353 | + | ||
| 354 | + | 30 | |
| 355 | + | ||
| 356 | + | ||
| 357 | + | ||
| 358 | + | After the last day of the 8th month and before the 1st day of the 12th month of the taxable year | |
| 359 | + | ||
| 360 | + | ||
| 361 | + | ||
| 362 | + | __ | |
| 363 | + | ||
| 364 | + | ||
| 365 | + | ||
| 366 | + | __ | |
| 367 | + | ||
| 368 | + | ||
| 369 | + | ||
| 370 | + | __ | |
| 371 | + | ||
| 372 | + | ||
| 373 | + | ||
| 374 | + | 100 | |
| 375 | + | ||
| 376 | + | ||
| 377 | + | ||
| 378 | + | (c)If a wholly owned subsidiary is first subject to tax under Section 23800.5 after the last day of the third month of the taxable year of owner, the amount of the next installment of estimated tax under subdivision (b) after the wholly owned subsidiary is subject to tax under Section 23800.5 shall not be less than the amount of the tax of the wholly owned subsidiary under Section 23800.5 and an amount equal to that amount shall be due and payable on the date the installment is required to be paid. For purposes of determining which installment is the next installment of estimated tax under subdivision (b), subdivision (b) shall be modified by substituting includes the tax of a wholly owned subsidiary under Section 23800.5 for exceeds the minimum tax specified by Section 23153. | |
| 379 | + | ||
| 380 | + | ||
| 381 | + | ||
| 382 | + | (d)The amendments made to this section by Section 1 of Chapter 1 of the First Extraordinary Session of the Statutes of 2008 shall apply to installments due for each taxable year beginning on or after January 1, 2009, and before January 1, 2010. | |
| 383 | + | ||
| 384 | + | ||
| 385 | + | ||
| 386 | + | (e)The amendments made to this section by Section 2 of Chapter 15 of the Fourth Extraordinary Session of the Statutes of 2009 shall apply to installments due for each taxable year beginning on or after January 1, 2010. |